GST Registration FAQs

• What is GSTIN?
  All businesses that successfully register under GST are assigned a unique Goods and Services Tax Identification Number also know as GSTIN.
• When should a business apply for multiple GST registrations?
  If a business operates from more than one state, then a separate GST registration is required for each state. For instance, If a sweet vendor sells in Karnataka and Tamil Nadu, he has to apply for separate GST registration in Karnataka and TN respectively.
  A business with multiple business verticals in a state may obtain a separate registration for each business vertical.
• What is Composition scheme and when should a business opt for it?
  Small businesses having an annual turnover less than Rs. 1 crore* ( Rs. 75 Lakhs for NE States) can opt for Composition scheme.
  

  *GST Council decided to increase the limit to Rs. 1.5 crores but notification is awaited.
  Composition dealers will pay nominal tax rates based on the type of business:

  • Composition dealers are required to file only one quarterly return (instead of three monthly returns filed by normal taxpayers).
  • They cannot issue taxable invoices, i.e., collect tax from customers and are required to pay the tax out of their own pocket.
  • Businesses that have opted for Composition Scheme cannot claim any input tax credit.

  Composition scheme is not applicable to :

  • Service providers
  • Inter-state sellers
  • E-commerce sellers
  • Supplier of non-taxable goods
  • Manufacturer of Notified Goods
• Who can Register for Composition scheme under GST?
  This scheme is a lucrative option for all SMEs who want lower compliance and lower rates of taxes under GST.
  A GST taxpayer whose turnover is below Rs 1 crore* can opt for Composition Scheme. In case of North-Eastern states and Himachal Pradesh, the present limit is Rs 75* lakh.
  Turnover of all businesses registered with the same PAN should be taken into consideration to calculate turnover.
  * Limit is raised to Rs. 1.5 crores after decision taken by the GST Council. However notification is awaited.
  

  Learn the Rules about Composition scheme & Know the pros & cons of being a composition dealer.

  Obtain GST registration and file CMP-02 to opt in for the scheme.
• What are the benefits of registering under GST?
  A. For normal registered businesses:
  1. Take input tax credit
  2. Make interstate sales without restrictions
  To know more about the benefits of GST click here.
  B. For Composition dealers:
  1. Limited compliance
  2. Less tax liability
  3. High working capital
  To know more about composition scheme click here
  C. For businesses that voluntarily opt-in for GST registration (Below Rs. 20 lakhs)
  1. Take input tax credit
  2. Make interstate sales without restrictions
  3. Register on e-commerce websites
  4. Have a competitive advantage compared to other businesses
  To know more about voluntary registrations click here